Profits have fallen at engineering and construction firm Balfour Beatty, following one-off costs and lower returns from its UK rail business.
Balfour said progress on major rail contracts had accelerated
The firm saw pre-tax, post-exceptional profits fall to £39m ($74m), from £67m, in the six months to the end of June.
Profits from the firm's UK's rail arm fell sharply as it completed less maintenance work for Network Rail.
Balfour Beatty said it was "positive" about current trading and had a healthy order book of future contracts.
The value of future contracts rose to £8.8bn in the first half of 2006, thanks to road projects in the UK, US and Dubai and construction schemes in Hong Kong.
Excluding one-off costs of £21m, Balfour Beatty's pre-tax profits rose 13% to £60m.
Rail profits fell by £9m to £11m, reflecting Network Rail's decision to bring maintenance in-house last year.
But work to upgrade tracks on the London Underground and to build rail links to the new Terminal 5 at Heathrow had accelerated, it said.
Profits from construction, facilities management and civil engineering projects rose strongly over the period.
"Trading prospects in our key sectors remain positive," said chief executive Ian Tyler.
"Our strategy for the future growth and development of our business is clear."